Fitch Warns on Prime RMBS, Cites Negative Equity

" On the heels of the Treasury’s latest plan to work with private investors to purchase private-party RMBS, Fitch Ratings said Monday afternoon that it had revised its projected cumulative loss estimates for 2005-2007 vintage U.S. prime RMBS transactions — in other words, more downgrades are coming. It’s probably more accurate to say that Fitch amplified its loss estimates, moving cumulative loss estimates for 2007 vintage prime RMBS approximately five times higher than previously estimated."